This is a fair affirmation of Genting in terms of its credit ratings.Bernama reported today that RAM Ratings Services Bhd has reaffirmed Genting Bhd's respective long- and short-term corporate credit ratings at 'AAA' and 'P1'.
In a statement here today, RAM said the long-term rating has a stable outlook.
It said the ratings were supported by sturdy business profile of Genting Highlands resort, the group's main gaming and resort operations in Malaysia, a moderate level of revenue and earnings diversity, robust liquidity profile and financial flexibility.
RAM said, however, the positives were tempered by Genting's weaker financial profile in the near term because of the hefty capital outlay of S$6.59 billion (S$1=RM2.41) for its Resorts World in Singapore, which also exposed it to heightened execution and development risks.
"As with other casino operators, Genting is exposed to regulatory risks in the various jurisdictions that it operates in," it said.
RAM's head of consumer/industrial ratings, Kevin Lim, said Genting has so far been able to manage the risks in relation to its Singapore project.
"Unlike other casinos in the region which are facing delays, Resorts World at Sentosa is on track for its opening in the first quarter of 2010.
"While there has been some upward revision in the development costs, it remains manageable," he said.
Well, we have also heard from Genting officially that the project at Sentosa Island is on steam, well within its budget and will have its soft opening in the first quarter of 2010 as originally planned.
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